How Future Car Insurance Payments Will Be Affected By The Current COVID-19 Outbreak

LOS ANGELES, May 5, 2020 /PRNewswire-PRWeb/ -- Compare-autoinsurance.org has launched a new blog post that presents the effects of coronavirus outbreak on the future car insurance payments.

For more info and free car insurance quotes, visit https://compare-autoinsurance.org/what-effects-the-current-covid-19-pandemic-will-have-on-future-car-insurance-premiums/

Stay at home restrictions imposed by authorities due to the coronavirus outbreak have caused vehicles across the US to sit in garages and in parking spots for long periods of time. The significant reduction in driving has resulted in fewer claims and higher profits for insurance providers. For this reason, most insurers are voluntarily offering relief to their customers. It is estimated that car insurance companies will be giving back a total of $10.5 billion in premiums and various benefits

Although it's too early to know how the current crisis will affect auto premiums over the long term, many believe that the insurance rates are likely to return to pre-coronavirus levels. However, there are many factors to consider, including the following:

    --  How often policyholders will drive. The annual mileage is an important
        factor used to determine car insurance premiums. Since the crisis began,
        a record number of employees and self-employed workers have been working
        from home. Many workers and companies that have operated successfully
        during the pandemic with remote teams may be getting used to the
        work-from-home setup and extend it as a benefit. Office workers are
        likely to adjust down their estimated annual mileage, or even switch to
        a usage-based policy if they continue to work-from-home. On the other
        hand, service workers are likely to return to their normal habits and
        see their rates return to normal in a few months.
    --  Claim frequency. In this time of crisis, vehicle accidents and claims
        are down significantly. This is normal because drivers are on the road
        for shorter periods and are less exposed to accident risks. This
        situation is not going to last for long. Once shelter-in-place policies
        subside, road traffic, car insurance claim rates, and car insurance
        premiums should return to normal.
    --  Policyholder difficulties. To date, more than 30 million Americans have
        filed for unemployment insurance benefits during the COVID-19 pandemic.
        Some industries will recover quickly after the pandemic is over, while
        other industries will suffer for years to come. Less overall economic
        activity means that many drivers will not be able to pay their auto
        loans, leases, or car insurance. Insurance providers are likely to
        increase premiums to offset their losses caused by unemployed
        policyholders who can't afford insurance.
    --  Distracted driving. The legislation and enforcement against the use of
        handheld devices while driving is another factor used to determine
        premiums. According to III, mobile phone use is a factor in 14% of
        distraction-related fatal crashes. However, many believe that the
        percentage might be higher.
    --  Natural disasters frequency. Car insurance got more expensive due to
        devastating natural events such as hurricanes, tornadoes, wildfires, and
        floods. If insurance providers will experience more comprehensive claims
        and losses, then it's likely to increase the premiums for clients who
        live in states that are affected by extreme weather events.
    --  The profitability of the insurer's portfolio. The current
        low-interest-rate environment means carriers will have reduced
        investment income for the foreseeable future. Because of this, providers
        are likely to increase the premiums or to eliminate coronavirus-related
        relief to remain profitable.

For additional info, money-saving tips and free car insurance quotes, visit https://compare-autoinsurance.org/

Compare-autoinsurance.org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.

SOURCE Internet Marketing Company